Hong Kong signs co-operation agreement with Shanghai Gold Exchange amid gold rally

Mon Jan 26 2026

Hong Kong has signed a co-operation agreement with the Shanghai Gold Exchange to foster high-quality development of the city's gold market at the Asian Financial Forum on Monday, as gold prices hit yet another record.  This came as gold surged to a record high above US$5,000 (HK$39,000) an ounce, as rising geopolitical tensions drove investors to flock into safe-haven assets.

Chief Executive John Lee Ka-chiu said the government is committed to expanding Hong Kong's gold storage, targeting a storing capacity of more than 2,000 tonnes in three years. The collaborative governance structure for Hong Kong's new gold central clearing system, Hong Kong Precious Metals Central Clearing Company Limited, is expected to begin trial operations this year.

 It's wholly owned by the government, with its board to be chaired by the Secretary for Financial Services and the Treasury and a representative from Shanghai Gold Exchange as deputy chair.

Other representatives are mainly from major local or overseas banks, as the lenders serve as key participants in gold trading and clearing, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

This collaboration will also leverage Shanghai Gold Exchange's physical warehousing management regime to provide gold management services for participants in both Hong Kong and international markets, Hui added. He stated that Hong Kong will introduce more products as the next step, including gold futures on the Hong Kong Exchange, to enrich the entire value chain covering storage, clearing, and products.

Deputy Governor Zou Lan of the People's Bank of China said at the forum that the PBOC will support the Shanghai Gold Exchange in participating in the establishment of Hong Kong’s gold central clearing system, assisting Hong Kong in building an international gold trading center. For the preferential tax regimes offered to funds and single family offices, the government will also introduce the legislative proposal in the first half of this year, proposing to include precious metals as qualifying investments.

Besides, Hui noted that a new gold fund will list in the city this week, leveraging Hong Kong's well-established gold infrastructure for physical gold trading and storage, with the option of physical gold redemption at banks. The issuer plans to introduce an unlisted share class for potential distribution through licensed digital asset exchanges, bridging traditional and digital finance, Hui added.

Previously, the FSTB signed an MoU with the Shenzhen Municipal Financial Regulatory Bureau, and it's expected to let Hong Kong's gold traders engage in substantive co-operation with qualified Shenzhen refining enterprises, Hui said. In the future, Hui pointed out that Hong Kong seeks to explore more gold trading collaborations in the Greater Bay Area in various areas, such as warehousing.

Source : https://www.thestandard.com.hk/